‘Thyrocare will amplify 10 times in five years’

Founded in 1996, Thyrocare Technologies, India’s largest thyroid testing laboratory, has clocked an annual growth rate of 30-40 per cent. Conducting over 25,000 tests daily, its services are now available via 565 franchisees, which enable blood samples from remotest part of the country to reach the centralised processing laboratory at Mumbai. Exerpts from an interview with Jayata Sharma.

- Dr A Velumani Founder & Managing Director of Thyrocare Technologies

How did the transition happen from being a scientist to starting a diagnostic lab?

I worked with Bhaba Atomic Research Centre (BARC) for 14 long years. Work was starting to become mundane. I felt that I had learned enough. So, I moved out of BARC and started Thyrocare at a 150 square feet rented premises in Byculla, Mumbai.

Five hundred fifty-six franchisees in 10 years. What’s next?

I am currently working on increasing the number of tests, network, manpower and ultimately the turnover. Recently, Thyrocare acquired a 50,000 sq feet space in Navi Mumbai. We will also be concentrating on the R&D and have earmarked three to five per cent of revenue for it. Network growth—till the taluka level—is another focus area. We also plan to start educational programmes for pathologists and students.

What is the secret behind such a strong logistics network?

Ten years back, I realised the importance of logistics in my business and brought to India barcoded serum vials (BSV) to reduce costs and distances. Earlier, blood was stored and transported in test tubes, ampoules, beakers and flasks. BSV made logistics cheaper and faster. We require five hours to complete any investigation, and BSVs allowed us to revert to patients in less than 24 hours. Our logistics are so strict that no department can commit an error.

Why did you develop the franchising model?

I am a scientist and my focus is on processing blood samples. I should not do procuring—it is something better left to an entrepreneur. Thus, I invented this model. I pay my franchisees a good margin and that keeps them on their toes to procure additional sample load. My balance sheet shows only Rs 30 crore as turnover, but what patients pay is almost Rs 80 crore.

Why don’t you cover all diagnostic tests?

I have perfected serum-based tests, but not whole blood or tissue or other biological fluids. I would focus on them one by one and if I approach it intelligently, I may perfect them too.

Why do the tests at Thyrocare focus on preventive healthcare?

At any given point of time, 10 per cent of India’s population is in need of some medical care. Out of these, only one per cent are acutely sick people. The rest nine per cent are not even aware that they have some problem. The 40,000 diagnostic laboratories in our country are all fighting for that one per cent. Few are focusing on the nine per cent, which need preventive healthcare.

We are targeting this very nine per cent. We are planning to include some common tests like heamatology, serology and microbiology. They are important in providing preventive care support. Some high-end tests are also planned.

What makes Thyrocare successful?

We have an organised, innovative, intelligent model. Our six unique strengths are quality, cost, logistics, speed, systems and reach.

Are you planning to expand internationally?

Growth requires expansion and I am looking at various available options. I am evaluating the entire diagnostic industry to see what can be networked and what can be branded.

What change have you seen in the diagnostic market in the last 10 years?

When I had entered the market, the industry was not organised. We can say that Thyrocare played a major role in ushering in the changes. It is a known fact that growth is tremendous when industry gets organised.

How does Thyrocare benefit from collaborations with pharma companies?

We do have collaborations with pharma companies like Cadilla, Sun Pharma, Dr Reddy's, Glaxo and Abort. They purchase tests from Thyrocare at a 50 per cent subsidised rate and give them as complimentary coupons to doctors. The doctor in turn gives it to his patients, which helps in expanding the business for all.

These coupons normally are 50 or 100 per cent discounted. As for global collaborations, when foreign companies come in India, I will definitely collaborate with them. As for now, I am not going to them, let them come to us.

How do you see Thyrocare five years from now?

The business would be amplified 5-10 times. I see Thyrocare as a Rs 200-crore company with 10 strong competitors. I plan to introduce CT scans at Thyrocare for a mere Rs 500. A lucky man is one who is well prepared for an opportunity!

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